Press Release

30 April 2008

DANA PETROLEUM PLC
("DANA", "THE COMPANY", OR "THE GROUP")

BABBAGE GAS FIELD DEVELOPMENT APPROVED

Dana Petroleum is pleased to announce that it has approved the development of the Babbage gas field (Dana 40%) in the UK Southern North Sea. Dana’s co-venturers, Eon Ruhrgas (47% and operator) and Centrica Resources (13%) have also approved the project, which remains subject to formal Secretary of State approval.

The field will be developed using 3 wells initially, with the option to drill a further 2 wells after first gas, across a newly built platform. The gas will be transported to West Sole and onwards to the Dimlington terminal on Humberside. First gas is planned for early 2010.

Dana has also recently approved two further new field developments. Firstly, the Grouse oil field (Dana 50%) in the Greater Kittiwake Area of the UK Central North Sea, where first oil is planned for early 2009, and secondly, the E18-A gas field (Dana 5.228%) in the Dutch Southern North Sea, where first gas is scheduled for late 2009.

Tom Cross, Dana’s Chief Executive, commented:

“Dana currently produces from 30 oil and gas fields across the North Sea and Egypt and is on target for production growth of more than 30% in 2008. These three North Sea developments supplement Dana’s production growth from 2009 onwards.

The Babbage field is one of the largest undeveloped gas accumulations in the UK and Dana’s partnership with two of Europe’s major gas utility companies highlights the quality embedded within our development portfolio.

In addition, Dana is operating the Barbara/Phyllis joint development initiative in the UK Central North Sea, which is another large gas development, currently at the pre-sanction phase. Therefore, in addition to our recent oil discovery at West Rinnes and extensive ongoing exploration drilling programme, Dana is delivering a stream of new oil and gas developments.”

TO VIEW BABBAGE AREA MAP CLICK HERE

30 April 2008

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Notes for Editors:

Babbage Gas Field (Dana 40%)

1. The Babbage gas field was discovered by the 48/2-2 well in 1988/89, which found gas in the Lower Leman Sandstone Formation. The 48/2a-4 well was drilled in 2006 and flowed gas at 10.7 mmscf/d, and also resulted in a major upgrade in the estimated field gas-in-place and reserves. Significant technical work has been undertaken since completion of the 48/2a-4 well to mature the opportunity to development sanction status. The field is structurally on trend at the Rotliegendes level with Ravenspurn North and is generally comparable with the Johnston field where Dana is also a major stakeholder (50%). The field is 10 km long by 1.5 km wide, bounded to the NW by a NNE-SSW fault and by dip-closure to the south and west.
   
   
2. The Babbage field will be developed via a normally unmanned installation (NUI), which is tied in to the existing West Sole system via a new 28 km pipeline (see diagram). The gas will then be transported to the Dimlington terminal on Humberside, where it enters the NTS. The initial phase of the development will comprise of 3 wells, with an additional 2 wells planned once some performance history has been gathered. There is also some potential for developing the south-east of the field at a later stage, via a subsea tieback to the Babbage platform.
   

Grouse Oil Field (Dana 50%)

1. The Grouse oil field is located in the Greater Kittiwake Area (“GKA”) in the UK Central North Sea.
   
   
2. The Grouse field was discovered by the 21/19-1A well in 1980/81 and subsequently appraised by the 21/19-12/12z well in 2007. The field contains hydrocarbons in the Upper Jurassic Fulmar Formation. The field is being developed as a single well, sub-sea tie-back to the Kittiwake platform via an existing tee-piece in the flowline from the Goosander field.
   
   
3. Grouse will be the 5th producing field in the GKA (the others being Kittiwake, Mallard, Gadwall and Goosander) and the third field developed since Dana acquired its interests in the area in 2003 from Shell and ExxonMobil.
   
   

E18-A Gas Field (Dana 5.228%)

1. The E18-A gas field is located in the Dutch sector of the Southern North Sea.
   
   
2. The field was discovered in 2006 by well E18-6 with a field extension proven in 2007 by well E18-7. Both these wells were suspended as gas producers. Gas is found in the Lower Slochteren Sandstone and underlying Carboniferous.
   
   
3. The field will be developed initially from the two existing suspended wells which will be tied-back across an unmanned platform to the F16-A platform (Dana 1.2%).